SC ENHANCES COMPENSATION IN SHARAD SINGH MOTOR ACCIDENT CASE

by | Oct 1, 2025

Supreme Court of India judgment on Sharad Singh motor accident case compensation

Supreme Court enhances compensation in Sharad Singh motor accident case (2025)


SC ENHANCES COMPENSATION IN SHARAD SINGH MOTOR ACCIDENT CASE


CASE SUMMARY – In Sharad Singh vs. H. D. Narang & Anr. , the Supreme Court addressed compensation for a 20-year-old accident victim rendered paraplegic. The Court found that adopting minimum wages underestimated the potential of a bright student preparing for Chartered Accountancy. It recalculated his notional income at ₹5,000 per month with 40% future prospects, awarding ₹40,34,356 plus interest. Additionally, it directed the insurance company to pay ₹20 lakhs towards verified medical expenses. The judgment recognized the victim’s lost aspirations, prolonged suffering, and upheld the principle of just and fair compensation.


ASPECTS DETAILS
Case Title Sharad Singh (Dead) Through LR vs. H. D. Narang & Anr.
Introduction The case concerns compensation arising from a motor vehicle accident that left a 20-year-old man paraplegic, later represented by his mother after his death.
Factual Background The victim, a B.Com student pursuing Chartered Accountancy, sustained 100% disability after being run over by a negligently driven car. He remained bedridden for 20 years until 2021. His family incurred huge medical expenses across Delhi, Goa, and Bengaluru.
Legal Issues
  1. Quantum of compensation for loss of income.
  2. Validity of medical expenses claimed.
  3. Applicability of minimum wages vs. prospective income for a CA aspirant.
Applicable Law National Insurance Co. Ltd. vs. Pranay Sethi (2017) 16 SCC 680 regarding computation of income and future prospects.
Analysis The Court rejected the insurance company’s objection to bills from outside Delhi, recognizing the necessity due to climatic conditions. It enhanced the victim’s monthly notional income from minimum wages (₹3,352) to ₹5,000, with 40% addition for future prospects.
Conclusion The Court awarded a total of ₹40,34,356 with 9% interest, plus ₹20 lakhs for medical expenses, payable within 4 months.
Current Scenario Judgment delivered on 26 September 2025, modifying High Court’s award, ensuring just compensation to the deceased victim’s family.

 

“A young man’s shattered dreams deserve just compensation.“

 

SOURCE – SUPREME COURT OF INDIA

READ ALSOSC ENHANCES COMPENSATION FOR MOTOR ACCIDENT VICTIM’S HEIRS

 

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Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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